Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 08-04-2015, 07:07 PM
 
10 posts, read 8,669 times
Reputation: 18

Advertisements

Hello everyone, I have some questions regarding USDA loans and our ability to get one. First what is it? is it like FHA loans?

My partner and I are looking into buying a house, a few of which are USDA eligible. we have a combined income of roughly $58k, which according to the USDA website , puts us above the low income bracket ($46k) but below the moderate income loan limit. ($81k) He has a credit score in the 650-660 range, and mine is in the 750's. The only real debt we have is 2 car loans ($580/month combined) and maybe another $75 in minimum credit card payments, but we'd probably just pay those off before seeing the bank.

What are the credit, and debt to income requirements for USDA, how about percent for down payment?

The USDA looks like a good deal, but I don't know if I should just wait and get an FHA loan.


Thanks for reading
Quick reply to this message

 
Old 08-04-2015, 07:55 PM
 
Location: Port Charlotte
3,930 posts, read 6,414,136 times
Reputation: 3457
USDA is similar to FHA in terms of downs, etc, but a little more flexible. Go talk to a mortgage broker (NOT Big Bank) and get a comparison.

My daughter went with USDA because there was a teacher's credit allowable. Otherwise, it would have been a wash.
Quick reply to this message
 
Old 08-05-2015, 06:19 AM
 
Location: MID ATLANTIC
8,663 posts, read 22,834,550 times
Reputation: 10485
When talking to someone about these loans, there are two kinds of USDA loans: direct and guaranteed. Guaranteed is what a local lender can help with and is for low to moderate income. Direct is only handled only by USDA offices, is a lower rate and for low income buyers. No local loan officers can help with direct.
Quick reply to this message
 
Old 08-05-2015, 09:09 AM
 
274 posts, read 424,711 times
Reputation: 138
My sister just did a USDA in December and got a crazy good rate, 2.85% which for no credit and moderate income (roughly 45k IIRC combined) was pretty durn good. The PMI was lower at that time as well.

I dont' remember if she went direct or guarantee.
Quick reply to this message
 
Old 08-05-2015, 11:49 AM
 
3,805 posts, read 9,296,265 times
Reputation: 4978
Quote:
Originally Posted by mllc413 View Post
Hello everyone, I have some questions regarding USDA loans and our ability to get one. First what is it? is it like FHA loans?

My partner and I are looking into buying a house, a few of which are USDA eligible. we have a combined income of roughly $58k, which according to the USDA website , puts us above the low income bracket ($46k) but below the moderate income loan limit. ($81k) He has a credit score in the 650-660 range, and mine is in the 750's. The only real debt we have is 2 car loans ($580/month combined) and maybe another $75 in minimum credit card payments, but we'd probably just pay those off before seeing the bank.

What are the credit, and debt to income requirements for USDA, how about percent for down payment?

The USDA looks like a good deal, but I don't know if I should just wait and get an FHA loan.


Thanks for reading
Go with USDA if you can. Your monthly Mortgage Insurance will be half of what FHA charges, and if you can negotiate seller-paid closing costs, your out-of-pocket can literally be zero. (Yes, inspection and appraisal must be paid up front, but I had a few wherein we actually got the appraisal fee refunded because the seller concession covered everything)

USDA= zero down payment, fha = 3.5%.

Interest rates are pretty much identical, at least that's what I'm seeing, your mileage may vary.
Quick reply to this message
 
Old 08-05-2015, 08:47 PM
 
10 posts, read 8,669 times
Reputation: 18
Quote:
Originally Posted by Pfhtex View Post
Go with USDA if you can. Your monthly Mortgage Insurance will be half of what FHA charges, and if you can negotiate seller-paid closing costs, your out-of-pocket can literally be zero. (Yes, inspection and appraisal must be paid up front, but I had a few wherein we actually got the appraisal fee refunded because the seller concession covered everything)

USDA= zero down payment, fha = 3.5%.

Interest rates are pretty much identical, at least that's what I'm seeing, your mileage may vary.

Thanks for the info. I wasn't even thinking about USDA until I saw some listings had "USDA Eligible" written in. Seems like a good deal for those moderate income families. I was looking into mortgage brokers in my area (something else I never heard of until someone here mentioned it), are they better to go through than going to my local credit union?
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top